After taking my household on a nine-day trip to Honolulu, Hawaii, my plan to relocate there may be again within the playing cards! Since 2014, two years after retiring from my finance job, I have been considering transferring again to Honolulu to spend extra time with my dad and mom. Nevertheless, truly making the transfer has been a lot more durable than anticipated.
Simply as financially insecure folks usually inform themselves “only one extra 12 months” earlier than retiring, I have been saying “perhaps subsequent 12 months” about transferring to Honolulu for the previous 10 years!
The factor is, life retains getting in the best way. First, we had a son in 2017, then a daughter in 2019, and the pandemic made us crave stability and familiarity. Our son bought into a faculty he enjoys immensely, and now our daughter has joined the identical college, which we consider she’ll additionally take pleasure in. In consequence, the inertia of life has stored us in San Francisco.
Nevertheless, with my dad and mom now of their mid-70s, the time to spend extra time with them is now. Our children additionally dealt with their longest time away from dwelling properly. Though, they complained in regards to the warmth, they missed it as soon as we returned. My considerations about them adjusting to a brand new setting have diminished.
For background, my grandparents had been born and raised in Honolulu, so was my dad. My grandmother is half native Hawaiian as properly. Each my dad and mom are retired in Honolulu.
The Challenges of Residing in Honolulu, Hawaii
There are three principal challenges of residing in Honolulu: housing, meals, and work. When you plan to ship your youngsters to non-public college, affording the schooling and getting accepted are additionally important challenges.
Let’s focus on every problem for those who’re contemplating residing and dealing in Honolulu. If in case you have ever lived and labored in Honolulu or at present do, I might love your insights as properly.
Honolulu’s Excessive Dwelling Costs
Honolulu boasts one of many highest median dwelling costs within the nation at roughly $1,050,000. In the meantime, Zillow has the median Honolulu dwelling worth round $800,000, however I do not belief Zillow. When home searching, it usually appears that houses price way more than the median worth, irrespective of the town. Humorous how that’s.
To afford a median-priced dwelling utilizing my 30/30/3-5 dwelling shopping for rule, you’d must make between $210,000 and $350,000, have a $210,000 down fee, and preserve a $105,000 liquid buffer post-purchase.
When you come from high-priced housing markets like San Jose, San Francisco, Los Angeles, San Diego, Seattle, New York, or Boston, you won’t be as shocked by Honolulu’s excessive dwelling costs. Nevertheless, for those who’re coming from in all places else in America, put together to really feel the ache.
Proudly owning Actual Property in San Francisco Makes Transferring To Honolulu Simpler
The median dwelling worth in San Francisco is round $1,800,000, which is about 75% increased than in Honolulu. Subsequently, transferring to Honolulu might save us round 40% if we purchase a median-priced dwelling.
Nevertheless, we do not need a median-priced dwelling; we wish a incredible dwelling with ocean views or one that’s transformed and near the seaside. Sadly, these houses price over $4 million, with actually no higher restrict.
To pay for such a house with money, we would must promote a number of rental properties. This might simplify our lives as we age, however it will additionally damage our passive earnings once more. After chopping our passive earnings by ~29% in 2023 as a consequence of a money dwelling buy, we do not wish to make such a drastic transfer once more.
Luxurious houses in Honolulu usually take 3 – 6 months to promote, not like in San Francisco, the place promoting in a single month is frequent. Given the less high-paying jobs in Honolulu, there is a larger funding threat related to shopping for luxurious actual property there.
When you purchase property in Honolulu it is best to think about the home extra as a consumption expense than as an funding.
Honolulu’s Excessive Meals Prices
Produce in Honolulu is the most costly in America as a result of additional delivery prices. For instance, a bag of cotton sweet grapes I purchased prices $18 at Safeway in Honolulu, in comparison with $14 in San Francisco.
Anticipate to pay $20 – $25 for a plate lunch, making it straightforward for a household of 4 to spend $80 – $100 for lunch, together with tax, tip, and drinks. Nevertheless, portion sizes are comparatively massive when eating out, together with meals vans.
Under highlights quite a lot of meals prices in Honolulu, up to date not less than every year by a neighborhood of vacationers. Irrespective of the place you come from, you’ll positively really feel the burden of excessive meals prices in Honolulu.
We Develop Our Personal Fruit in Honolulu
In Hawaiian tradition, there is a saying: “When you deal with the land, the land will deal with you.” Due to the bushes my grandparents and fogeys planted a long time in the past, we now have loads of fruit in our backyards.
We now have a number of mango bushes that produce over 500 mangoes a 12 months. By relocating to Honolulu, my household of 4 will guarantee these mangoes do not go to waste. We even have guava, orange, and pomelo bushes, which implies we cannot must spend a lot on breakfast if we preserve to a principally fruit morning food plan.
Throughout our journey, our household of 4 principally shared two plate lunches and had leftovers. A lot of the purpose is as a result of our kids are nonetheless younger. Nevertheless, my spouse and I’ve at all times been average eaters and are solely about 5% heavier than we had been since faculty.
Honolulu’s Comparatively Low Pay
The commonest suggestions from locals is the decrease pay in comparison with the mainland. We’re speaking 40%-60% decrease pay for a similar jobs. There are additionally fewer six-figure jobs accessible, particularly in comparison with San Francisco’s tech sector. The primary industries in Honolulu are tourism, protection, agriculture, fishing, and manufacturing, which are not recognized to be high-paying industries.
In accordance with the 2020 Census, the median family earnings in Honolulu was $96,580. The St. Louis Fed information exhibits it was $96,304 in 2022. For 2024, the family earnings is probably going nearer to $105,000 – $110,000.
Whereas not dangerous in a vacuum, it is not nice in comparison with the median dwelling worth of $1,050,000. Consequently, it is common for 2 or three generations to reside collectively. If a family consists of two-to-four working people, a median family earnings of $100,000 is not excessive.
As of Might 2024, ZipRecruiter experiences the typical wage in Honolulu is $61,247. To personal a median-priced home and lift a household in Honolulu, you might want to earn far above common or cohabitate with a number of working people. The monetary assist of fogeys can be fairly frequent.
We Have Sufficient Passive Earnings For Residing In Hawaii
After saving and investing since 1999, we now have sufficient passive earnings to assist a middle-class way of life for a household of 4 in Honolulu because it’s cheaper than San Francisco. The secret is to maintain our housing prices decrease than they’re in San Francisco. If we wish to purchase a luxurious property, we might must work part-time or full-time.
Nevertheless, going again to work is one thing I sit up for as a result of I wish to be a trainer at my youngsters’s college. Relocating to a brand new metropolis means making new mates and assembly new folks, and diving headfirst into my youngsters’s college neighborhood is a perfect manner to try this.
As a trainer, I will get to know many different lecturers and directors, in addition to loads of new dad and mom. I might love to show private finance, entrepreneurship, advertising and marketing, branding, and communications to center or highschool college students. I spent three years teaching highschool tennis and loved it for probably the most half.
If I can not get a job educating at my youngsters’s colleges, I will proceed to jot down from dwelling. However as a substitute of slowly going loopy writing in a darkish room, I will get to jot down exterior on a lanai overlooking the water!
If my subsequent two books do properly (scheduled for 2025 and 2028), perhaps I will get one other e-book deal that retains me writing till each youngsters graduate highschool. The pay is not excessive as an creator, however writing books will present them their previous man takes lecturers critically.
Honolulu’s Impartial Grade Colleges
Honolulu has some glorious unbiased and public colleges. Since our youngsters already attend a Mandarin immersion unbiased college, we plan to proceed with unbiased training initially.
My dad and mom reside close to two of Honolulu’s finest unbiased grade colleges: ‘Iolani and Punahou. We toured ‘Iolani and Punahou with our kids, and located each colleges to be wonderful unbelievable amenities. Maryknoll additionally gives a Mandarin immersion program, which is engaging if we relocate whereas our youngsters are nonetheless younger. We extremely worth studying a second language.
As a bonus, the annual tuition at ‘Iolani and Punahou is about $13,500 lower than what we pay in San Francisco, and Maryknoll is $23,000 cheaper. The schooling can be the identical from Okay-12, so if we transfer when our youngsters are older, we would pay about 50% much less since costs go up by grade in San Francisco.
The mix of higher amenities and decrease prices is difficult to beat. I am certain the lecturers are fantastic too. Nevertheless, moving into these colleges can be difficult with out a native community to assist us.
Iolani’s principal entry factors are Kindergarten and sixth grade, whereas Punahou has entry factors at Okay, 4, 6, 7, and 9.
The issue can be in moving into colleges
If our expertise with making use of to preschool in San Francisco is any indication, getting each youngsters into such unbiased colleges can even be troublesome. Demand is at all times excessive, and we’re coming from San Francisco, the place we do not have a neighborhood Honolulu community to assist us.
It is doable that one in all our youngsters will get in and the opposite does not. Logistically, having two youngsters go to completely different colleges is suboptimal. Punahou has extra accommodative entry factors with Okay, 4, 6, 7, and 9. Given our youngsters are three years aside, entry for grades 4 and seven or 6 and 9 would work.
We hope my background now as an creator supplies selection from different households who’re principally in drugs, regulation, and finance. We additionally do not want tuition help for 2 youngsters and may commonly donate.
Based mostly on the ages of our youngsters and the colleges’ principal entry factors, we’d apply within the Fall of 2029 for our daughter to enter as a 4th grader and our son to enter as a seventh grader at Punahou in 2030. Or we will apply within the Fall of 2031 for sixth grade and ninth grade in 2032.
Relocating to Honolulu in 2032 might be finest as a result of our kids will study extra Mandarin at their college, which works till the eighth grade. We’ll get to take pleasure in our San Francisco dwelling we simply purchased in 2023 for 9 years.
The Worry Of Being A Stranger In A New Metropolis Is Overblown
You may concern relocating since you’ll have to begin over making mates. The stronger your friendships and household connections again dwelling, the more durable it’s to maneuver.
Nevertheless, as a faculty father or mother, I’ve realized how straightforward it’s to fulfill new folks and make mates if you wish to. There are infinite social capabilities to fulfill different dad and mom, together with playdates, birthdays, college occasions, dad and mom’ nights out, and fundraisers.
As well as, you’ll be able to be a part of meetups or golf equipment associated to your hobbies. My non-public sports activities membership in San Francisco has supplied the most important way of life increase for under $175 a month. It’s been a good way to fulfill fellow tennis and pickleball gamers.
So do not be afraid of loneliness when relocating. Honolulu has heat and welcoming residents. Simply be certain that to grasp the tradition, familiarize your self with Hawaiian language, and respect island traditions. As a brand new resident, attempt to give greater than you’re taking.
As for the youngsters, it’s higher in the event that they relocate to a brand new metropolis after they had been youthful. It is going to be powerful to go away their mates in SF, however they may make new mates. In addition to, their college solely goes to the eighth grade, which implies they finally must reapply anyway.
Promoting Property Earlier than Relocating To Honolulu
We have been accumulating properties in San Francisco since 2003. We now have 4 rental properties and one major residence in San Francisco, plus a trip property in Palisades Lake Tahoe. Our web value is getting sophisticated and we would not thoughts simplifying.
Given we’d like capital to purchase a brand new dwelling and do not wish to cope with tenant and upkeep points, we most likely must promote not less than two properties earlier than we relocate. At present, I handle all properties in San Francisco, which is simple and provides me one thing to do.
With actual property commissions coming down after the NAR price-fixing settlement, promoting now has change into extra palatable. I simply can’t get myself to pay greater than a 4.5% promoting fee charge when expertise has lowered commissions in each different trade.
On the identical time, with the tech and synthetic intelligence growth, promoting now could be laborious. I count on AI to spice up housing costs within the San Francisco Bay Space a long time to come back. In addition to investing in non-public AI corporations, the following finest strategy to take part in AI is by proudly owning actual property in cities with the main AI corporations.
In 20 years, I am certain I’ll look again with remorse having offered a main west facet San Francisco property in the present day. Subsequently, I want to preserve not less than two funding properties in San Francisco if we relocate. Perhaps a property supervisor is the answer, however I’m unsure.
It is Price Residing In The Greatest Place Doable
I’ve lived overseas for 13 years in 5 nations, labored in worldwide equities for 13 years, and traveled throughout America for the previous 47 years. Honolulu is likely one of the finest locations to reside within the second half of your life.
There is a purpose why Hawaii residents have the longest life expectancy in America: a greater, extra enjoyable way of life. As soon as you’ve got gathered sufficient wealth, having an extended and wholesome life turns into a precedence.
Sure, there are downsides to residing in Honolulu, equivalent to visitors, increased costs, comparatively excessive state earnings taxes, and island fever. It can even be harder “making it in Hawaii” except you’re in drugs, regulation, or an entrepreneur. Even then, it is powerful to grind so laborious when island life is so enjoyable. Lastly, the tempo of life is far slower, which can be laborious to regulate to.
Nevertheless, I consider the positives far outweigh the negatives. As soon as you’ve got constructed sufficient wealth, your objective must be to reside as lengthy and as wholesome a life as doable.
Winding Down In Honolulu In The Second Half Of Life
I wish to put on shorts and t-shirts year-round. It might be good to swim within the ocean within the mornings and play tennis within the evenings. Residing in a medium-sized metropolis additionally supplies sufficient work alternatives to remain productive, however not a lot that you just really feel overwhelmed by competitors. Most of all, I would like my household to be protected and glad.
Honolulu supplies all this stuff. Nevertheless, we cannot know till we attempt to relocate in 2030 on the earliest. Ideally, we relocate in 2032 when our son is in ninth grade and our daughter is in sixth grade. This timeline will maximize our time in our new home, profit from the AI growth, and provides us time to area out the sale of our properties.
Within the meantime, we can be sending our youngsters to summer time college in Honolulu for not less than a month so we will attempt earlier than we purchase!
When you reside and work in Honolulu, I might love to listen to your ideas! What are another negatives and positives we must always learn about earlier than relocating?
Do not Stop Your Job To Relocate To Honolulu
When you’re planning to go away your job for a brand new one in Honolulu, I might try to negotiate a severance package deal as a substitute of quitting. You’ll recognize the monetary runway given pay is commonly decrease in Honolulu.
Try How To Engineer Your Layoff, the very best useful resource to show you learn how to negotiate a severance package deal. Use “saveten” at checkout to avoid wasting $10. I’ve up to date the e-book six occasions with new methods and insights since 2012.
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